Kerry Logistics increase revenue by 14.0% following APEX purchase

Kerry Logistics increased its revenues by 14.0% to *HK$24,036m in the 2016 fiscal year. Releasing its financial results today, Kerry Logistics also announced an increase in core operating profit by 4.0% to HK$1,878m.

In its Integrated Logistics sector, Kerry Logistics recorded a 1.0% rise in segment profit at HK$1,653m. This was despite a decline in cargo volume. In its International Freight Forwarding (IFF) sector, segment profit grew 24.1% to HK$448m. This was attributed to robust growth in Asia as well as the inclusion of US freight forwarder APEX’s results after its purchase in June 2016.

William Ma, Group Managing Director of Kerry Logistics, said, “Kerry Logistics has managed to weather market headwinds in 2016 and minimised the adverse macro-economic impact on its business with quick response to market changes. The sustainable increase in earnings was attributable to strong growth of our IFF business, solid growth in South and Southeast Asia, as well as synergies generated from recent acquisitions.”

Looking forward, the group cited e-commerce and the development of the ‘One Belt, One Road’ initiative as potential areas for growth. Geroge Yeo, Chairman of Kerry Logistics said, “Aligning ourselves with China’s game-changing One Belt, One Road Initiative, we are systematically expanding our network by sea, air, road and rail. The acquisition of the freight forwarding group in CIS countries will significantly expand our coverage in Central Asia. The opening of new road and rail freight routes from China to Europe and Pakistan will enable us to offer different options to our customers.”

*$= HK$7.76/€= HK$8.59

Source: Kerry Logistics